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- 15 shopping centres with rentable area of 638,000 sq m are announced to be delivered by the end of 2016 -
Moscow, 1 August 2016, - CBRE, global real estate advisor, summarizes H1 2016 results of the Russian Regional Retail market. According to the report, 15 shopping centres with rentable area of 638,000 sq m are announced to be delivered by the end of 2016. Part of them will probably be postponed until next year.
8 new shopping centres with total rentable area of 266,000 sq m were delivered in Russian regional cities (St. Petersburg excluded) in H1 2016. Current total regional stock (excluding Moscow and St. Petersburg) is 13 mn sq m.
As of H1 2016 penetration of modern shopping centres in megacities reached 366 sq m per 1,000 inhabitants, and in cities with less than 1 mn people penetration of shopping centres amounted to 261 sq m per 1,000 inhabitants.
Yekaterinburg, Samara and Nizhniy Novgorod have the highest penetration of retail space per 1,000 inhabitants compared to other megacities.
Among cities with less than 1 mn of population, Krasnodar is still the leading market. The city’s 611 sq m per 1,000 inhabitants is the highest penetration among all Russian cities, even considering the agglomeration that includes Krasnodar itself and nearby cities.
International retailers were cautious in regards of regional expansion in Russia in Q2 2016: only one brand – Amsterdam Chips Company – chose regional market as a point of entry to the Russian market.
In total, 4 international brands opened their first Russian stores in regions in H1 2016, and all of them in St. Petersburg. At the same time, retailers already existing in the Russian market, continue expansion in regional shopping centres. Availability of high-quality shopping centres rather than city itself is the major factor taken into account for the most of them.
Mikhail Rogozhin, Managing Director of Retail Department of CBRE in Russian Regions, said:
“Regional retail market is still undersupplied, usually a new shopping centre in a small city turns out to be the first quality project, and it covers the whole market as well as provides great opportunity for international and federal brand stores opening. For example, the opening of Sunrise City in Naberezhnye Chelny will bring several Inditex’s brands, H&M, LC Waikiki, Rive Gauche.”